Understanding marriage settlements
In order for a marriage settlement to be valid, the same must be in writing, signed by the parties and executed before the marriage
Published in Daily Tribune on July 14, 2022
by: Migmar Bernped S. Francisco
A marriage settlement is defined as a contract entered into by people who are to marry each other for the purpose of fixing the condition of their conjugal partnership with regard to their present and future property. Succinctly put, a marriage settlement (more commonly known as “prenuptial agreement”) is an agreement of would-be spouses that shall govern their property relations upon the celebration of their marriage.
In our country, marriage settlements are recognized under the Family Code. In particular, Article 75 provides that future spouses may agree upon which property regime shall govern their marriage be it absolute community, conjugal partnership of gains, complete separation of property or any other regime.
Generally, in absolute community of property, the community or common property of the spouses covers all property owned by them at the time of the celebration of their marriage or acquired thereafter. Worth noting is that by default, this property regime shall govern the property relations of the future spouses if and when they do not or fail to choose one of the other property regimes or, having chosen one of the other property regimes, the agreement they crafted evidencing their choice is void.
In conjugal partnership of gains, the spouses pool all income from their separate properties and those acquired by either or both of them through their efforts and by chance during the marriage to a common fund which shall answer for the family expenses. Accordingly, the spouses retain the ownership, possession, administration and enjoyment of their exclusive properties. Unlike in absolute community of property, each spouse may dispose his or her exclusive property without the consent of the other.
The regime of separation of property may cover present or future property or both, and contemplates not only total but also partial separation. In cases of partial separation, those not agreed upon as separate shall pertain to the community property. In this type of marriage settlement, the spouses shall own, administer and enjoy their own separate property and shall only contribute to the family expenses in proportion to their income.
As previously stated, the future spouses may also come up with a property regime other than the aforementioned. For example, the would-be spouses may agree for only some of their properties to pertain exclusively to their union with only the fruits redounding to the family (akin to a conjugal partnership of gains), and the rest of their present and future properties be governed by absolute community property.
In order for a marriage settlement to be valid, the same must be in writing, signed by the parties and executed before the marriage. If, however, the future spouses later on decide to have their marriage settlement modified, they can only do so before the marriage, in the similar manner and form previously mentioned. In order to affect or bind third persons, the marriage settlement must be registered in the civil registry where the marriage contract is registered and in the proper registries of deeds.
If for whatever reason the marriage does not take place, the marriage settlement is without effect, save for those stipulations that do not depend on the marriage. An example of which is a stipulation concerning support for the children.
Unlike in absolute community of property, each spouse may dispose his or her exclusive property without the consent of the other.
A basic understanding of what marriage settlements are and the salient features of each of the property regimes provided under the Family Code can help the future spouses in coming up with an agreement that is in line with the property regime they choose for their marriage. Being contractual in nature, and thus requiring the consent of both future spouses, it also ensures fair dealing between them as they shall agree only on terms they are amenable to.
